As far as I know, 360s now are pretty good, it's the old ones that crapped out. I bought one about a month ago and it's great. Too early to know if it will crap out, but they do give an automatic 1 year warrenty now to try and get past the bad rep they've got.
as far as the hardrive versions go, there's 3 choices. The core has no hardrive so you'll have to buy memory cards which is a waste of money IMO. The next up one has a 20gig I believe and the new elite has 100 gig and hdmi.
I bought the elite because it's only $50 more then the other hardrive model and the 100gigs may be useful down the road. The hdmi is nice too if you have/will get an hdmi tv.
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